Nissan said Monday that an internal investigation revealed group CEO Carlos Ghosn allegedly lied to investors about his salary and used company resources for personal expenses.
The company that Ghosn is widely credited as saving in the 1990s reportedly will ask for his ouster Thursday.
Nissan issued a statement Monday and said the executive has "been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn's compensation." The statement also implicated Nissan board of directors member Greg Kelly in the alleged fraud.
CHECK OUT: One on One: Carlos Ghosn (2000)
Nissan CEO Hiroto Saikawa apologized for Ghosn's behavior in a press conference Monday night in Japan and said that Ghosn had too much power in the company. Ghosn was reportedly arrested by Japanese authorities Monday.
“Beyond being sorry I feel great disappointment, frustration, despair, indignation and resentment," Saikawa said, according to the Associated Press.
Ghosn has served as the company's chairman since 2017 but was CEO for most of his career with the automaker. Additionally, he serves as the Renault-Nissan-Mitsubishi Alliance chairman. The company added Ghosn's misconduct came after an internal report based on a tip from a whistleblower. Ghosn is reportedly a French citizen, which could complicate the investigation.
Ghosn helped put Nissan on the right track in the late 1990s after the company neared bankruptcy. Over the ensuing three decades, he earned nicknames for cutting costs at Nissan and its subsidiaries and served as a visionary for the Renault-Nissan-Mitsubishi Alliance.